Spain cuts 2012 deficit to 6.7 pct of GDP
2013-02-27 18:00:57
Spain slashed its public deficit for 2012 to 6.7 percent of gross domestic product (GDP), Spanish Prime Minister Mariano Rajoy confirmed on Wednesday during a parliamentary session.
The Spanish government had aimed to reduce its public deficit to an EU-agreed 6.3 percent of the GDP in 2012 from the 9.4-percent level in 2011.
Spain's deficit had been reduced by 3.5 percent in structural terms, Rajoy said, noting that none of the countries belonging to the Organization for Economic Co-operation and Development (OECD) had ever made such a large adjustment.
He attributed the drop of deficit to the economic policy taken by the government, while recognizing huge efforts made by the Spanish society.
Meanwhile, the Bank of Spain reported on Wednesday that Spain's economy will continue falling in the first quarter of 2013 mainly due to the contraction of domestic demand and the fall in investment.
The Bank's experts expected household spending will continue falling due to increased prices, reduced salaries and high unemployment.